Processing fee is a one-time charge to be paid by the borrower to the financial institution to covers the cost incurred to process a loan application.

A loan sanction letter is issued by a financial institution post evaluation of an applicant’s creditworthiness and other details like KYC etc. This letter is proof of eligibility of a loan from the financial institution and mentions the main loan details like maximum loan amount, maximum tenure, type of rate of interest EMI amount and special conditions if any. A sanction letter with these conditions is valid for a specified period of time.

A Power of Attorney allows a person to grant another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney.
First, the ‘General Power of Attorney’where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the ‘Special Power of Attorney’wherein only a specific right is given by the owner to the chosen person.

The EMI is the amount of money a borrower pays back to a financial institution on a monthly basis towards the loan availed. It comprises of 2 components – the principal and the interest. So with every EMI, the borrower pays back a portion of the loan amount as a principal and a certain amount of interest. The EMI amount remains constant and by the end of the tenure, the borrower has paid back both principal and interest amount in full.

Pre-EMI is the interest amount paid by the borrower till the time final disbursement is pending and EMI is initiated. It is the interest on the amount of the loan disbursed and is payable every month from the date of each disbursement up to the date of commencement of the EMI. Pre-EMI is mostly applicable in cases where Under Construction property is being purchased on loan

The time period (in months or years) for which a financial institution lends the money to a borrower. The tenure may be different from person to person.

APF stands for Approved Project Funding.
Karza House identifies projects by certain developers and builders and evaluates basis the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Karza House .
The TAT(turn around time) for a loan disbursal, is lesser, where a project is already an APF and the loan processing is much simpler.

Loan to Value (LTV) is the amount of loan divided by the total value of the property and is represented in %. A loan value of INR 75 lakhs for a property worth INR 1 Crore would mean 75% LTV.

Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under-construction properties) and the terms agreed between the financial institution and the borrower.